The United States and the rest of the world are on the verge of a new
generation of personal mobile communications, as wireless phones become
portable high-speed Internet connections. The United States Government
must move quickly and purposefully so that consumers, industry, and
Government agencies all reap the benefits of this third generation of
wireless products and services.

In less than 20 years, the U.S. wireless industry has blossomed from
virtually nothing to one with 100 million subscribers, and it continues
to grow at a rate of 25 to 30 percent annually. Globally, there are
over 470 million wireless subscribers, a number expected to grow to
approximately 1.3 billion within the next 5 years. It is an industry in
which U.S. companies have developed the leading technologies for current
and future systems. It is an industry whose products help people
throughout the world communicate better and in more places, saving time,
money, and lives.

Many saw the first generation of wireless -- cell phones -- as an
extravagant way to make telephone calls. Yet as with all communications
systems, the value of wireless communications increased as the number of
users and types of use increased. Today's second generation wireless
technology increased services and information offered to users and
increased competition among providers. Digital "personal communications
services" provide added messaging and data features, including such
services as voice mail, call waiting, text messaging, and, increasingly,
access to the World Wide Web. These first and second generation
services increased productivity and reduced costs for thousands of
businesses as well as Government agencies.

The next generation of wireless technology holds even greater promise.
Neither the first nor the second generation of wireless technologies
were designed for multi-media services, such as the Internet. Third
generation wireless technologies will bring broadband to hand-held
devices. Higher speeds and increased capability will lead to new audio,
video, and other applications, which may create what many are calling
"mobile-commerce" (m-commerce) that people will use in ways that are
unimaginable today. Moreover, an international effort is underway to
make it possible for the next generation of wireless phones to work
anywhere in the world.

The Federal Government has always played a crucial role in the
development of wireless services. To foster the development of cellular
telephone service, the Federal Government made available radio frequency
spectrum that had previously been used by other commercial and
Government services. For the second generation -- digital PCS -- the
Federal Government allocated spectrum in bands occupied by private
sector users, and ensured competition by awarding numerous licenses,
while maintaining technology neutrality.

The United States has also placed a high value on promoting Internet
access. Government support for the development of third generation
wireless systems will help combine the wireless revolution with the
Internet revolution. As part of these efforts, radio spectrum must be
made available for this new use. The United States has already been
active by, among other things, participating at the World
Radiocommunication Conference 2000 (WRC-2000) earlier this year.
WRC-2000 adopted the basic principles of the U.S. position, which was
negotiated by Govern-ment and industry stakeholders: (1) governments may
choose spectrum from any one or all of the bands identified for third
generation mobile wireless; (2) governments have the flexibility to
identify spectrum if and when they choose; and (3) no specific
technology will be identified for third generation services. This
result will allow deployment of the best technologies and permit the
United States to move forward with rapid deployment of third generation
services in a way that advances all U.S. interests.

The spectrum identified by international agreement at WRC-2000, however,
is already being used in the United States by commercial
tele-communications, television, national defense, law enforcement, air
traffic control, and other services. Similar difficulties in making
spectrum available for third generation mobile wireless systems are
evident in other parts of the world. Because different regions have
already selected different bands, there almost certainly will be a few
preferred bands rather than a single band for third generation services.

In the United States, Federal Government agencies and the private sector
must work together to determine what spectrum could be made available
for third generation wireless systems.

Accordingly, I am hereby directing you, and strongly encouraging
independent agencies, to be guided by the following principles in any
future actions they take related to development of third generation
wireless systems:

-- Third generation wireless systems need radio frequency spectrum on
which to operate. Executive departments and agencies and the Federal
Communications Commission (FCC) must cooperate with industry to identify
spectrum that can be used by third generation wireless systems, whether
by reallocation, sharing, or evolution of existing systems, by July
2001;

-- Incumbent users of spectrum identified for reallocation or sharing
must be treated equitably, taking national security and public safety
into account;

-- The Federal Government must remain technology-neutral, not favoring
one technology or system over another, in its spectrum allocation and
licensing decisions;

-- The Federal Government must support policies that encourage
competition in services and that provide flexibility in spectrum
allocations to encourage competition; and

-- The Federal Government must support industry efforts as far as
practicable and based on market demand and national considera-tions,
including national security and international treaty obligations, to
harmonize spectrum allocations regionally and internationally.

I also direct the relevant agencies as follows:

1. I direct the Secretary of Commerce to work cooperatively with the
FCC, as the agencies within the Federal Government with shared
responsibility and jurisdiction for management of the radio frequency
spectrum, to develop, by October 20, 2000, a plan to select spectrum for
third generation wireless systems, and to issue, by November 15, 2000,
an interim report on the current spectrum uses and potential for
reallocation or sharing of the bands identified at WRC-2000 that could
be used for third generation wireless systems, in order that the FCC can
identify, in coordination with the National Telecommunications and
Information Administration, spectrum by July 2001, and auction licenses
to competing applicants by September 30, 2002.

2. I also direct the Secretary of Commerce to work cooperatively with
the FCC to lead a government-industry effort, through a series of
regular public meetings or workshops, to work cooperatively with
government and industry representatives, and others in the private
sector, to develop recommendations and plans for identifying spectrum
for third generation wireless systems consistent with the WRC-2000
agreements, which may be implemented by the Federal Government.

3. I direct the Secretaries of Defense, the Treasury, Transportation,
and the heads of any other executive department or agency that is
currently authorized to use spectrum identified at WRC-2000 for third
generation wireless services, to participate and cooperate in the
activities of the government-industry group.

4. I direct the Secretary of State to participate and cooperate in the
activities of the government-industry group, and to coordinate and
present the evolving views of the United States Government to foreign
governments and international bodies.

Furthermore, I strongly encourage the FCC to participate in the
government-industry outreach efforts and to initiate a rule-making
proceeding to identify spectrum for third generation wireless services
that will be coordinated with the Assistant Secretary of Commerce for
Communications and Information during the formulation and decisionmaking
process with the goal of completing that process by July 2001, so that
such spectrum can be auctioned to competing applicants for licenses by
September 30, 2002.

WILLIAM J. CLINTON

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